TIDM54WW
RNS Number : 6609Q
Cambridgeshire Housing Cap PLC
13 September 2017
Company Registration Number: 09102394
Cambridgeshire Housing Capital plc
Report and Financial Statements
For the year ended 31 March 2017
Contents
Statutory information 2
Strategic report 3 - 4
Directors' report 5 - 6
Corporate governance statement 7 - 8
Independent auditor's report 9 - 10
Statement of income and retained earnings 11
Statement of financial position 12
Notes to the financial statements 13 - 18
Statutory information
Company registration number 09102394
Directors Claire Higgins
Michael Heekin
David Keeling (resigned 19 October 2016)
Donald Bell
Edmund Smy
Gerard Wright (appointed 13 February 2017)
Secretary Claire Higgins
Registered Office c/o Cross Keys Homes Shrewsbury Avenue
Peterborough Cambridgeshire
PE2 7BZ
Independent Auditor Grant Thornton UK LLP
101 Cambridge Science Park
Milton Road
Cambridge
CB4 0FY
Bankers Royal Bank of Scotland plc
1st Floor
Conqueror House
Vision Park
Histon
Cambridge
CB24 9NL
Solicitors Trowers & Hamlins LLP
3 Bunhill Row
London
EC1Y 8YZ
Strategic report
Business review and key performance indicators
The Company was incorporated during 2014 as a subsidiary of
Cross Keys Homes Limited. The major purpose of the Company is to
support the parent company's objectives. The parent company was
established in 2004 and offers social and affordable housing in and
around Peterborough together with other tenant related
services.
In September 2014 the Company issued a 31 year GBP150 million
bond. The initial issue sold GBP105 million of the bond. During the
year the remaining GBP45 million retained bond was sold at a
premium of GBP4.3 million. The bond carries an interest rate of
4.25% and is repayable in 2045. On the same day the net proceeds of
the bond (less issue costs and the premium on issue) were on lent
to Cross Keys Homes Limited.
Given the Company's major objective and strategy is to support
the parent company's operation we assess the Company's success by
reference to the parent company's performance. In addition to the
bond, the remaining debt of the parent company comprised of a mix
of fixed, variable, cancellable and interest linked loans totalling
GBP139.4 million. This is in compliance with established treasury
management limits, which have been designed to manage the group's
exposure to interest rate fluctuations.
The group treasury policy and associated procedures were updated
to reflect the new environment as surplus proceeds from the bond
were invested with a range of counterparties, including AAA rated
Money Market Funds and banks/building societies, for periods
ranging from instant access to 12 months, ensuring sufficient
liquidity is maintained to meet operational cash flow
requirements.
The parent company ended the year with a loan/bond and overdraft
arrangements totaling GBP289.4 million and external cash
investments of GBP51 million. Further details of the loan balances
can be found in the group financial statements.
The gearing ratio, calculated as net debt divided by the
historic cost of housing properties decreased to 55.2% (2016 -
59.6%). The parent company expects this ratio to increase to a peak
of 60% during this next financial year. The group's borrowing
arrangements require compliance with a number of financial and
non-financial covenants. The group's position is monitored on an
on-going basis and reported to the board regularly. Recent reports
confirm that the group was in compliance with its loan covenants at
the reporting date and throughout the year and that the board
expects the parent company and the group to remain compliant in the
foreseeable future.
Principal risks and uncertainties
The principal risks facing the Company are:
-- the inability to meet its obligations in respect of the Bond Trust Deed; and
-- counterparty risk from the parent company.
The risks facing the parent company could also have a material
effect on the performance of Cambridgeshire Housing Capital plc.
These include:
-- welfare reform;
-- risk that the operating surplus of the parent company does
not perform in line with its business plan; and
-- the risk that the loan covenants are breached.
Strategic report (continued)
Management of these risks is controlled by:
-- monitoring the operating surplus of the parent company and
how it has performed against the business plan;
-- review of factors that may impact operating surpluses
including Welfare Reform; such factors increase the risk that the
cash flow obligations may not be met;
-- monitoring the covenants for both actual and anticipated performance.
Financial risk management policies and objectives
The group uses various financial instruments, including loans
and cash to raise finance for the group's operations. There are no
non-basic financial instruments nor any exposure to exchange rates.
The existence of these financial instruments does expose the group
to some other financial risks. The risks arising from the group's
financial instruments are considered by the directors to be
interest rate risk, liquidity risk and credit risk. The parent
company board review and agree policies for managing each of these
risks and they are summarised below:
Interest rate and inflation risks
The group finances its operations through a mixture of retained
surpluses, bank borrowings and capital market bonds. The group's
exposure to interest fluctuations on its borrowings is managed by
the use of both fixed and variable rate facilities, including
interest rate swap instruments. The treasury policy permits fixed
rate loans to be within a range of 50%-90% of total loans. The
reason for such a large range is to provide flexibility in managing
both interest rate and inflation risk together.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient
liquidity is available to meet foreseeable needs and invest cash
assets safely and profitably. At year end the group held cash
balances totaling GBP59m with a current ratio of 4.0 (2016 -
2.2).
Credit risk
The group's principal credit risk relates to tenant arrears.
This risk is managed by providing support to eligible tenants with
their application for Housing Benefit and closely monitors the
arrears of self-funding tenants. Welfare Reform and resulting
changes to the benefits system has been identified as a key risk to
the group, and a project team assesses the impact of emerging
changes.
The Company's exposure to the above risks is considered to be
mitigated by the terms of the bond agreement.
Future developments
The Directors do not anticipate any change in the Company's
principal activity. No further bond issues are planned in the next
twelve months.
..........................................
Donald Bell
Chair
19 June 2017
Directors' report
The Directors submit their Report and the audited Financial
Statements for the year ended 31 March 2017.
Directors
The directors who served the Company during the year were as
follows:
-- Claire Higgins
-- Michael Heekin
-- Donald Bell
-- Edmund Smy
-- Gerard Wright (appointed 13 February 2017)
-- David Keeling (resigned 19 October 2016)
In accordance with the Company's Articles of Association, none
of its Directors are required to retire. None of the Directors who
held office at the beginning or end of the year had any interest in
the shares of the Company.
Distribution of profits
The Directors recommend that a gift aid donation to the parent
company will be made following approval of the financial
statements. The amount to be paid will be determined at a Board
meeting.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Strategic
Report, the Directors' Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law the directors
have elected to prepare the financial statements in accordance with
applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice), including
Financial Reporting Standard 102 'The Financial Reporting Standard
applicable in the UK and Republic of Ireland'. Under Company law
the directors must not approve the financial statements unless
satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of the Company for
that period. In preparing these financial statements, the directors
are required to:
-- select suitable accounting policies and then apply them consistently;
-- make judgments and estimates that are reasonable and prudent;
-- state whether applicable UK Accounting Standards and have
been followed, subject to any material departures disclosed and
explained in the financial statements; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The directors confirm that:
-- so far as each director is aware there is no relevant audit
information of which the Company's auditors are unaware; and,
-- the Directors have taken all steps that they ought to have
taken to make themselves aware of any relevant audit information
and to establish that the auditors are aware of that
information.
Directors' report (continued)
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the parent
company's web-site related to this Company. Legislation in the
United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other
jurisdictions.
To the best of our knowledge:
-- the Financial Statements, prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable laws), give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company; and
-- the Strategic Report and the Directors' Report include a fair
review of the development and performance of the
business and the position of the Company, together with a
description of the principal risks and uncertainties that the
Company faces.
Going concern
The Company's business activities, its principal risks and
uncertainties and factors likely to affect its future position are
set out within the Strategic Report. We consider that there are no
events since the financial year-end that have had an important
effect on the financial position of the group.
The financial support available to the Company from the parent
company gives reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable
future. For this reason, it continues to adopt the going concern
basis in the financial statements.
Disclosure of information in the strategic report
Information concerning the business review, key performance
indicators, principal risks and uncertainties, financial risk
management policies and objectives and future developments is
included within the Strategic Report.
Auditors
Grant Thornton UK LLP have expressed their willingness to
continue in office. Accordingly a resolution in accordance with
section 489(4) of the Companies Act 2006 is to be proposed for the
re-appointment of Grant Thornton UK LLP.
Signed on behalf of the Board of Directors
....................................
Claire Higgins
Secretary
19 June 2017
Registered in England - No. 9102394
c/o Cross Keys Homes Shrewsbury Avenue Peterborough
Cambridgeshire
PE2 7BZ
Corporate governance statement
The Company has a listed security in issue and is required to
comply with the applicable sections DTR 7.1 and DTR 7.2 of the
Financial Services Authority ("FSA") handbook.
The Company does not comply with the UK Corporate Governance
Code. However, we have reported on our Corporate Governance
arrangements by drawing on best practice available, including those
aspects of the UK Corporate Governance Code we consider to be
relevant to the Company and best practice.
The Board and its Directors
The Company is led by a Board of Directors ("Board"). The
appointment of the Directors is pursuant to the Articles of
Association dated 25 June 2014.
Each Director is of equal standing. Owing to the size and nature
of the Company, there is no appointed Chief Executive. There is
also no distinction drawn between executive and non-executive
Directors.
As the Board all have considerable experience within the Social
Housing sector, and also act in various capacities for the Cross
Keys Homes Group, the Company does not arrange any formal induction
or training for new Directors. This arrangement is reviewed on an
on-going basis to consider its appropriateness.
The Directors are covered by the Cross Keys Homes Group's
directors' and officers' indemnity insurance policy.
The Board acknowledges that it is collectively responsible for
the success of the Company by providing leadership, setting the
Company's strategic aims, ensuring that the necessary financial and
human resources are in place and reviewing management
performance.
In order to discharge these responsibilities, the Directors have
met three times during the year covered by these financial
statements. The table below indicates the number of meetings held
and the number of meetings attended by each Director.
Number of meetings held in
year 3
Claire Higgins 3
Donald Bell 2
Michael Heekin 3
Edmund Smy 3
Gerard Wright (from 13 February
2017) 1
David Keeling (to 19 October
2016) 2
All Directors receive appropriate and timely information and
briefing papers in advance of the Board Meetings. Day to day
management of the Company is delegated to the Cross Keys Homes
Limited's directors' team under Group Standing Orders
arrangements.
Corporate governance statement (continued)
The Board and its Directors (continued)
Appointments to the Board are made in line with the Articles of
Association. The parent company, Cross Keys Homes Limited has a
Performance and Governance committee that provides oversight for
the entire Cross Keys Homes Group of companies which includes
Cambridgeshire Housing Capital plc. The Company does not have a
separate and dedicated Nominations and Remuneration committee as
the size and nature of the Company does not warrant a dedicated
committee but relies on the Group Performance & Governance
committee for this function.
The Board does not undertake a formal annual evaluation of its
performance and that of its Directors and there is no formal policy
on re-election of Directors. The Directors, however, ensure that
the Board is structured in such a way that each member of the Board
is able to bring different experiences and skills to the operation
of the Company and encourages and supports each Director to
regularly update and refresh their skills and knowledge.
Internal control and risk management systems
The Board has established processes for identifying, evaluating
and managing the significant risks the Company faces. The Board
regularly reviews these processes, which have been in place from
the commencement of trading to the date of approval of this report.
The risks are also reviewed quarterly during the Cross Keys Homes
Group Audit and Risk Committee meetings.
The Board is responsible for the Company's system of internal
control and for reviewing its effectiveness. Such a system is
designed to manage rather than eliminate the risk of failure to
achieve business objectives, and can only provide reasonable and
not absolute assurance against material misstatement or loss.
The Board's monitoring covers all controls, including financial,
operational and compliance controls and risk management to ensure
it meets the minimum requirements of DTR 7.1.3. It is based
principally on reviewing financial and operational reports from
management to consider whether significant risks are identified,
evaluated, managed and controlled and whether any significant
weaknesses are promptly remedied or indicate a need for more
extensive monitoring.
As part of the requirements of DTR 7.1.3 the Board specifically
monitors the financial reporting process and the statutory audit of
the annual accounts through reports provided by management.
Furthermore, the Board reviews and monitors the independence of the
statutory auditor and considers the relationship with Cross Keys
Homes Limited as part of its assessment. This is monitored as part
the Cross Keys Homes Group Board meetings which consider the
relationship with the statutory auditor and all group
subsidiaries.
The Board members regularly review whether the existing internal
controls to monitor the requirements of DTR 7.1.3 are sufficient
and take appropriate action as necessary.
The Board has not identified nor been advised of any failings or
weaknesses which it has determined to be significant during the
course of its review of the systems of internal control.
The Board considers the existing internal controls to be
sufficient and in view of the small number of transactions does not
consider there to be a requirement for a specific Cambridgeshire
Housing Capital plc internal audit function. The requirement for a
dedicated internal audit function is considered annually.
Independent auditor's report to the members of Cambridgeshire
Housing Capital plc
We have audited the financial statements of Cambridgeshire
Housing Capital plc for the year ended 31 March 2017 which
comprises the statement of income and retained earnings, the
statement of financial position and the related notes. The
financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice),
including FRS 102 'The Financial Reporting Standard applicable in
the UK and Republic of Ireland.
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of Directors and Auditor
As explained more fully in the Directors' Responsibilities
Statement set out on pages
5-6, the directors are responsible for the preparation
of the financial statements and for being satisfied that they
give a true and fair view.
Our responsibility is to audit and express an opinion on the
financial statements in accordance
with applicable law and International Standards on Auditing (UK
and Ireland). Those standards require us to comply with the
Auditing Practices Board's (APB's) Ethical Standards for
Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements
is provided on the Financial Reporting Council's website at
www.frc.org.uk/auditscopepublic.
Opinion on financial statements
In our opinion the financial statements:
-- give a true and fair view of the state of the Company's
affairs as at 31 March 2017 and of its profit for the year then
ended;
-- have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and
-- have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act
2006
In our opinion:
-- the information given in the Strategic Report and the
Directors' Report for the financial year for which the financial
statements are prepared is consistent with the financial
statements; and
-- the information given in the Corporate Governance Statement
set out on pages 7 to 8 with respect to internal control and risk
management systems in relation to financial reporting processes is
consistent with the financial statements.
Independent auditor's report to the members of Cambridgeshire
Housing Capital plc (continued)
Matters on which we are required to report under the Companies
Act 2006
In the light of the knowledge and understanding of the company
and its environment obtained in the course of the audit, we have
not identified material misstatements in:
-- the strategic report and the directors' report; or
-- the information given in the Corporate Governance Statement
about internal control and risk management systems in relation to
financial reporting processes
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, in
our opinion:
-- adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
-- the financial statements are not in agreement with the accounting records and returns; or
-- certain disclosures of directors' remuneration specified by law are not made; or
-- we have not received all the information and explanations we require for our audit.
....................................
David Newstead
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Cambridge
Date:
Statement of income and retained earnings for the year ended 31
March 2017
Notes 2017 2016
GBP000 GBP000
Turnover - -
Operating profit - -
Interest receivable and similar income 6 6,137 4,547
Interest payable and similar charges 7 (6,013) (4,547)
Profit on ordinary activities before taxation 124 -
Taxation 8 (25) -
Profit after taxation 99 -
======== ========
Retained earnings at the beginning of the year - -
Profit for the year 99 -
Retained earnings at the end of the year 99 -
======== ========
The above relates wholly to continuing operations.
There is no difference between the result on ordinary activities
before taxation and the result for the year stated above and their
historic cost equivalent.
There were no items of other comprehensive income in either the
current or previous year.
The notes on pages 13 to 18 form part of these financial
statements.
Statement of financial position as at 31 March 2017
Notes 2017 2016
GBP000 GBP000
Fixed asset investment 9 148,289 103,229
Current assets
Debtors - amount falling due within
one year 10 297 208
Cash at bank 4,306 12
4,603 220
Creditors - amounts falling due within
one year 11 (322) (208)
Net current assets 4,281 12
Total assets less current liabilities 152,570 103,241
Creditors - amounts falling due after
more than one year 12 (152,459) (103,229)
Net assets 111 12
========== ==========
Capital and reserves
Called-up share capital 13 12 12
Retained earnings 15 99 -
Shareholders' funds 111 12
========== ==========
These financial statements were approved and authorised by the
Directors for issue on 19 June 2017.
Signed on behalf of the Board of Directors
..........................................
Claire Higgins
Director
Company Registration Number: 09102394
The notes on pages 13 to 18 form part of these financial
statements.
Notes to the Financial Statements
1. Statutory information
Cambridgeshire Housing Capital plc is a public company, limited
by shares and registered in England and Wales (no. 09102394). The
Company's registered office is c/o Cross Keys Homes, Shrewsbury
Avenue, Peterborough, PE2 7BZ.
2. Statement of compliance
The financial statements have been prepared in accordance with
the provisions of Financial Reporting Standard 102, "The Financial
Reporting Standard applicable in the United Kingdom and Republic of
Ireland" (United Kingdom Generally Accepted Accounting
Practice).
3. Accounting policies
3.1 Basis of preparation
The financial statements have been prepared on the going concern
basis, under the historical cost convention and in accordance with
the Companies Act 2006.
The financial statements are presented in Sterling, the
functional currency of the entity, rounded to the nearest
thousand.
3.2 Going concern
The directors have assessed the ability of the Company to
continue to operate as a going concern based on the Company being a
non-trading holding Company, which has the continuing support of
its parent undertaking.
After reviewing the Company's forecasts and projections, the
directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future, being a period of not less than 12 months from
the date of approval of these financial statements. The Company
therefore continues to adopt the going concern basis in preparing
its financial statements.
3.3 Disclosure exemptions
The Company is a qualifying entity for the purposes of FRS 102
as it is a member of a group that prepares publically-available
consolidated financial statements, and this Company's results are
included in the consolidation.
The following disclosure exemptions have been adopted in
accordance with the exemptions detailed in paragraph 1.12 of FRS
102:
a) The requirement to present a reconciliation of the number of
shares outstanding at the beginning and end of the year
b) The requirement to present a statement of cash flows
c) Financial instruments disclosures, including categories of
financial instruments and exposure to and management of financial
risks
In addition, details of transactions between wholly-owned
subsidiaries are not included, as per the disclosure exemption
provided by paragraph 33.1A.
Notes to the financial statements (continued)
3. Accounting policies (continued)
3.4 Interest receivable and similar income
Interest receivable is recognised as interest accrues, using the
effective interest method (that is the rate that exactly discounts
estimated future cash receipts through the expected life of the
financial instrument to the net carrying amount of the financial
asset).
3.5 Taxation
The current tax charge is based on the results for the year and
is measured at the amounts expected to be paid based on the tax
rates and laws substantially enacted by the reporting date. Current
tax is recognised in the Statement of income and retained earnings
for the year.
3.6 Investments
Investments are measured at cost less accumulated
impairment.
3.7 Financial instruments - initial recognition
Loans and other financial instruments are recorded in the
Statement of financial position at the amount of the gross
proceeds, less the initial cost of raising the finance which is
amortised over the period of the loan using the effective interest
rate.
Financial assets and liabilities are recognised when the Company
becomes a party to the contractual provisions of the financial
instrument and are measured initially at fair value adjusted for
transaction costs.
Issue costs and discounts/premiums on the issue of the bond are
recognised in profit or loss over the life of the bond.
3.8 Financial assets
Financial assets classed by the Company as loans and receivables
include fixed asset investments and cash.
Loans and receivables are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active
market. Loans and receivables are measured subsequent to initial
recognition at amortised cost, discounted at a rate equal to the
original effective rate, less provision for impairment. Any change
in their value through impairment or reversal of impairment is
recognised in the statement of income and retained earnings.
Provision against financial assets is made when there is
objective evidence that the Company will not be able to collect all
amounts due to it in accordance with the original terms of those
receivables. The amount of the write-down is determined as the
difference between the asset's carrying amount and the present
value of estimated future cash flows discounted at the original
effective rate. An assessment for impairment is undertaken at least
at each reporting date.
Notes to the financial statements (continued)
3. Accounting policies (continued)
3.9 Financial liabilities
Financial liabilities are obligations to pay cash or other
financial assets and are recognised when the Company becomes a
party to the contractual provisions of the instrument.
Financial liabilities are measured subsequent to initial
recognition at amortised cost using discount of the original
effective rate, with interest-related charges recognised as an
expense in finance cost in the Statement of income and retained
earnings. Finance charges, including premiums payable on settlement
or redemption and direct issue costs, are charged to the Statement
of income and retained earnings on an accrual basis using the
effective interest method and are added to the carrying amount of
the instrument to the extent that they are not settled in the year
in which they arise.
Financial liabilities are de-recognised only when the obligation
is extinguished, that is, when the obligation is discharged or
cancelled or expires.
4. Judgements in applying accounting policies and key sources of
estimation uncertainty
Preparation of financial statements requires management to make
significant judgements and estimates. The items in the financial
statements where these judgements and estimates have been made
include:
-- The ability of Cross Keys Homes Limited to make interest
payments or principal payments when they fall due. This is
mitigated through a secure loan agreement backed by assets owned by
Cross Keys Homes Limited. This is also backed by a long term
business plan with a positive trajectory.
-- The bond and the intercompany debtor are classified as basic
financial instruments. This is following a review of the details
and terms of the bond issue and the on-lending agreement. No terms
have been identified which would cause the bond and intercompany
debtor to fail the basic classification criteria according to
section 11 of FRS 102.
5. Operating profit
None of the Directors received any remuneration as Directors
from the Company during the year. The Company has no directly
employed personnel.
Audit fees of GBP10,000 (plus VAT) and other administrative
expenses are borne by Cross Keys Homes Limited, the ultimate parent
undertaking.
6. Interest receivable and similar income
2017 2016
GBP000 GBP000
Interest on fixed asset investments 6,059 4,487
Unwinding of discounts on NPV 60 60
Bank deposit interest receivable 18 -
6,137 4,547
-------- --------
Notes to the financial statements (continued)
6. Interest receivable and similar income (continued)
Under the terms of the Bond Loan Agreement the parent company is
required to reimburse the Company all expenditure incurred in the
respect of the Bond issue. Immediately after the issuance of the
Bond the Company immediately on-lent the proceeds to the parent
company which gave rise to interest receivable during the year; the
terms of the on-lending agreement mirror the bond terms.
7. Interest payable and similar charges
2017 2016
GBP000 GBP000
Bond interest payable 6,059 4,481
Unwinding of discounts on NPV (62) 60
Interest payable to group undertakings 16 -
Bank fees - 6
6,013 4,547
-------- --------
8. Taxation
2017 2016
GBP000 GBP000
Current tax
UK current tax expense 25 -
-------------- --------
The tax assessed for the year is based on the standard rate of
corporation tax in the UK of 20% (2016 - 20%):
2017 2016GBP000
GBP000
Profit on ordinary activities 124 -
before tax
------------ --------------
Profit on ordinary activities before
tax multiplied
by standard rate of corporation tax 25 -
in the UK of
20% (2016 - 20%)
--------
Total tax charge for the year 25 -
-------- --------------
Whilst a corporation tax charge has been included in these
financial statements, the Company will make a gift aid distribution
from its available profits to the parent company within nine months
of the year end. This will have the effect of reducing the
corporation tax payable to nil.
Notes to the financial statements (continued)
9. Fixed asset investments
2017 2016
GBP000 GBP000
As at 1 April 2016 103,229 103,169
Additions 45,000 -
Unwinding of discount 60 60
As at 31 March 2017 148,289 103,229
---------- ---------
On June 1, 2016, the Company issued the second tranche of a
fixed rate secured bond, denominated in Sterling and maturing 14
September 2045, paying a fixed coupon bi-annually of 4.25%. The
proceeds of this bond were immediately re-lent to the parent
company.
The loan to the parent company is considered to be a fixed asset
investment as it is intended for use on a continuing basis in the
Company's activities. The Directors consider such loans to be held
for the long term over the life of the related debt.
The brought forward investment is discounted to take account of
transaction costs and discount on issue relating to an earlier bond
issue that were passed on to the parent company; there is no
discounting in relation to the new bond as the costs of the issue
and the premium received remained vested in the Company.
The amounts stated above are all due in more than one year. The
total amount repayable on maturity is GBP150,000,000.
10. Debtors - amount falling due within one year
2017 2016
GBP000 GBP000
Prepayments and accrued income 297 208
-------- --------
11. Creditors - amount falling due within one year
2017 2016
GBP000 GBP000
Corporation tax 25 -
Accrued expenses 297 208
--------
322 208
-------- --------
12. Creditors - amounts falling due after more than one year
2017 2016
GBP000 GBP000
Fixed rate bonds 152,459 103,229
-------- --------
During the year the Company issued the second tranche of a fixed
rate secured bond denominated in Sterling and maturing 14 September
2045, paying a fixed coupon bi-annually of 4.25%. A premium of
GBP4.3m was received in addition to the GBP45m bonds issued.
Security has been given on amounts due to the Bond investors
amounting to GBP150,000,000. The nature of this security is Cross
Keys Homes Limited's housing stock.
Notes to the financial statements (continued)
12. Creditors - amounts falling due after more than one year (continued)
The repayment profile of the bonds is as follows:
On Demand Less 1-5 More 2017
GBP000 than years than Total
12 months GBP000 5 years GBP000
GBP000 GBP000
-------------------- ------------ ----------- --------- --------- ---------
Amounts due to the
Bond investors - 6,375 25,500 299,813 331,688
-------------------- ------------ ----------- --------- --------- ---------
Amounts due to the Bond Investors reflects the gross payments
(including interest) due on the GBP150,000,000 bonds that have been
issued to external investors.
13. Called up share capital
Authorised 2017 2016
GBP000 GBP000
50,000 shares of GBP1 each 50 50
-------- --------
Allocated issued and partly paid
50,000 shares of GBP1 each 25p paid 12 12
-------- --------
Upon incorporation the Company issued 50,000 shares of which 25p
was paid to provide working capital to establish the business.
All shares rank pari passu in all regards.
14. Reserves
Retained earnings - includes all current and prior period
retained profit and losses.
15. Reconciliation of movement in shareholders' funds
2017 2016
GBP000 GBP000
Opening shareholders' funds 12 12
Results for the year 99 -
Closing shareholders' funds 111 12
-------- --------
16. Related party transactions
In accordance with paragraph 33.1A of FRS 102, no related party
transactions are disclosed as all such transactions were between
wholly-owned subsidiaries of the Group.
17. Ultimate parent undertaking
Cambridgeshire Housing Capital plc is a wholly-owned subsidiary
of Cross Keys Homes Limited, which is the ultimate parent and
ultimate controlling entity. Cross Keys Homes Limited is the
smallest and largest entity in the group that produces consolidated
financial statements. Consolidated financial statements of Cross
Keys Homes Limited can be obtained from the Company Secretary at
Cross Keys Homes, Shrewsbury Avenue, Peterborough, PE2 7BZ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UORORBBAKAAR
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